An unnamed fund management services client has served notice on Gam that it will be moving most of its business in-house from Q2 2023.
As of 31 December, the mandate was worth CHF 11.5bn (£9.4bn), which generated roughly CHF 6m in revenue each year for Gam.
This equated to less than 3% of net fee and commission income for 2021, the firm said.
The Swiss manager will be left with CHF 1bn in its fund management services arm after the client moves CHF 10.5bn to its existing fund administration provider from April 2023.
Gam said it “has a strong pipeline of future business opportunities”.
Sean O’Driscoll, head of Gam Fund Management Services, said: “We are proud to have helped our client grow their business over a long period and look forward to continue working with them as a trusted partner. We remain focused on revenue growth using the full suite of Gam capabilities in response to client demand for an enhanced offering.”
The loss of another client mandate comes hours after the Financial Conduct Authority slapped the Swiss manager with a £9.1m fine for failing to manage conflicts of interest with Greensill Capital, a supply chain firm at the centre of a scandal involving former star manager Tim Haywood.
Gam has struggled to hold onto assets even years later, with AUM dropping by £18bn in 2021 to CHF 100bn, and reverse its losses.
